School bond issue, tax levy increase to go to Springfield voters

School board says both proposals are needed, to add teachers and classrooms

Jan. 23, 2013

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The school board voted 6-0 early Tuesday to place two funding proposals — a $71.65 million bond issue and a 20-cent tax levy hike — on the April 2 ballot.

“Five years ago, when the financial crisis hit, we tightened our belts very responsibly to the tune of $20 million. We asked staff and teachers to be frugal...” said board president Tom Prater. “We survived, but I think that’s just it; we survived but we didn’t thrive.”

District officials said the proposals are connected. The bond issue would improve two high schools, add space at the elementary level and update technology, while the levy would add teachers and improve staff pay.

“Teachers and classrooms are the focus of these proposals, and we need help with both,” Prater said. “It would be, I think, irresponsible of us to address one without the other.”

Board members said they felt compelled to offer funding “solutions” because of years of spending cuts, crowded classrooms at the elementary level and steady enrollment growth — which is expected to continue.

“We cut in a lot of different areas and to me this is just allowing us to begin to build back up to where we were and where we need to be,” said board vice president Kris Callen.

“...Our community expects us to be leaders. I think they expect us to be courageous.”

Despite their strong support, board members asked tough questions about the process used to determine which projects were prioritized for the bond and the best way to pay for new technology.

Board member Bruce Renner said he wanted more input into the process of picking the proposed bond projects, which were identified by individual departments and vetted by the superintendent’s cabinet.

“If the people who are dealing with this every day feel like these are the top issues, the majority of the board feels like these are top priorities, I’m not going to throw a wrench into it,” he said.

Board member Gerry Lee raised a “philosophical” question about why the proposed technology upgrades — which include replacing computers that are six years old or older — was part of the bond and not the tax levy proposal.

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Bonds typically pay for “bricks and mortar,” while the levy is for operating expenses. Technology can be paid for by either funding mechanism.

“To me that’s more operating-oriented than financing replacement computers,” Lee said. He noted that computers might need to be replaced multiple times during the course of a 20- or 30-year bond.

Chief Financial Officer Steve Chodes said technology upgrades slowed during the economic downturn and that in a “perfect world” the technology wouldn’t be paid for out of a bond issue.

“We’ve gotten behind on our computer replacements, and frankly we’re in a bit of a hole now in terms of keeping up the cycle of replacement,” he said.

Chodes said other options such as pulling money out of reserves or using lease-purchase financing — which allows the district to have funding upfront that is paid off, typically from operating funds, over time — would eventually affect the amount of available operating funds.

“When we started talking about using operating funds, once again, it’s what are we going to give up to be able to do that?” he said. “That’s why we felt it was necessary to get us caught up.”

The bond issue wouldn’t raise taxes but it would extend, by four years, the length of time the current debt service levy of 51 cents would stand.

If approved, the 20-cent tax levy hike would be phased in over two years. When fully implemented, it would raise the annual tax bill on a $100,000 home by $38 and generate about $6.4 million more a year for the district.

The administration briefly discussed a 25-cent tax levy proposal but backed the lower amount after testing the level of voter support through a recent survey.

Noting that part of the tax levy increase would pay for operating costs tied to the bond, such as staffing additional classrooms, Prater said it made sense to split the hike amount over two years.

“We don’t need that second tier of money until we begin to need to staff and (air condition) new space and transport students. We have some wiggle room there,” he said.“This also lessens the burden on taxpayers because we’re climbing out of the financial crisis, we’re starting to see recovery, but another year will be helpful for taxpayers.”

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Ballot language

The Springfield school board voted to place the following proposals on the April 2 ballot.
“Proposition Teachers for Kids”
Shall the Board of Education of The School District of Springfield R-12, Springfield, Missouri, be authorized to increase the operating tax levy ceiling of the District by $0.10 per $100 of assessed valuation for tax year 2013 and by an additional $0.10 per $100 of assessed valuation for tax year 2014 for the purpose of paying operating costs of the District, including costs of maintaining class size, and staff and teacher salaries?
If this proposition is approved, the operating levy of the District is estimated to be $3.2899 per $100 of assessed valuation in tax year 2013, and $3.3899 per one hundred dollars of assessed valuation in tax year 2014.
“Proposition Classrooms for Kids”
Shall The School District of Springfield R-12, Springfield, Missouri, issue its general obligation bonds in the amount of $71,650,000 for the purpose of (1) constructing new buildings and purchasing land, (2) improving, repairing, renovating and acquiring buildings, including technology improvements, and (3) furnishing and equipping school buildings?
If this proposition is approved, the District’s debt service tax levy is estimated to remain unchanged at the current levy of $0.51 per one hundred dollars of assessed valuation.

Election costs

Under state law, the political subdivision that compelled the election must pay the cost. The Greene County clerk estimates the cost of the April election at $110,000 to $120,000. If the school district is the only governmental entity on the ballot, it will pay the entire cost. Springfield school officials said they were already expecting to pay for the election because two seats on the seven-member governing board will be decided. Three candidates — Annie Busch, Gerry Lee and Matthew Simpson — will vie for those spots.

Bond issue

The proposed $71.65 million bond issue calls for the following projects to be funded:
$19.25 million — Kickapoo High School. Renovate cafeteria, kitchen, auditorium and east entrance; enclose courtyard and complete upgrade to building mechanical system.
$17.8 million — Construct a new, 450-student elementary school in southwest Springfield. This would absorb the 250 students who currently attend Sherwood Elementary and alleviate crowding in that part of the district.
$16 million — Technology. Upgrade network bandwidth in all classrooms to accommodate expanded instructional use of Internet-connected devices in classrooms and replace computers that have been in use for six or more years.
$13.5 million — Fremont Elementary. Add 45,000 square feet of space, including about nine classrooms, and renovate some existing areas of the school to address growth in north Springfield.
$4 million — Glendale High School. Renovate cafeteria and enhance library.
$1.1 million — Hickory Hills Elementary and Middle School. To accommodate growth, add four elementary classrooms